Merger Talks: The Story of Three Community Development Corporations in Boston SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Merger Talks: The Story of Three Community Development Corporations in Boston
In 2002, a successful community development corporation in Boston, Massachusetts was approached by two other organizations about potential mergers. Each organization had distinctive geographical and ethnic roots but there were clear financial and management advantages to be had from combining assets. In one case, merger discussions proceeded with the benefit of lawyers and common board connections. In the other case, despite good progress at the beginning, the merger talks became increasingly contentious with opposition from community groups who rallied political leadership to step in. This case offers the opportunity to analyze the action and decision-making of the three organizations using alliance, negotiations, organizing and strategic frameworks. It also allows the class to engage in discussion about the nature of "community" in community-based organizations. HKS Case Number 1921.0
Swot Analysis of "Merger Talks: The Story of Three Community Development Corporations in Boston" written by Roy Ahn, Christine W. Letts includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Community Merger facing as an external strategic factors. Some of the topics covered in Merger Talks: The Story of Three Community Development Corporations in Boston case study are - Strategic Management Strategies, Conflict, Demographics, Financial management, Mergers & acquisitions, Negotiations, Strategic planning and Organizational Development.
Some of the macro environment factors that can be used to understand the Merger Talks: The Story of Three Community Development Corporations in Boston casestudy better are - – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, central banks are concerned over increasing inflation,
competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Merger Talks: The Story of Three Community Development Corporations in Boston
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Merger Talks: The Story of Three Community Development Corporations in Boston case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Community Merger, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Community Merger operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Merger Talks: The Story of Three Community Development Corporations in Boston can be done for the following purposes –
1. Strategic planning using facts provided in Merger Talks: The Story of Three Community Development Corporations in Boston case study
2. Improving business portfolio management of Community Merger
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Community Merger
Strengths Merger Talks: The Story of Three Community Development Corporations in Boston | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Community Merger in Merger Talks: The Story of Three Community Development Corporations in Boston Harvard Business Review case study are -
Ability to lead change in Organizational Development field
– Community Merger is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Community Merger in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Community Merger are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Highly skilled collaborators
– Community Merger has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Merger Talks: The Story of Three Community Development Corporations in Boston HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Community Merger
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Community Merger does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Community Merger in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Community Merger has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Community Merger to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Community Merger is one of the most innovative firm in sector. Manager in Merger Talks: The Story of Three Community Development Corporations in Boston Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Community Merger is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Community Merger is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Merger Talks: The Story of Three Community Development Corporations in Boston Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Community Merger is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Roy Ahn, Christine W. Letts can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the Merger Talks: The Story of Three Community Development Corporations in Boston Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Community Merger is one of the leading recruiters in the industry. Managers in the Merger Talks: The Story of Three Community Development Corporations in Boston are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Community Merger is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Merger Talks: The Story of Three Community Development Corporations in Boston | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Merger Talks: The Story of Three Community Development Corporations in Boston are -
Slow decision making process
– As mentioned earlier in the report, Community Merger has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Community Merger even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Products dominated business model
– Even though Community Merger has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Merger Talks: The Story of Three Community Development Corporations in Boston should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Merger Talks: The Story of Three Community Development Corporations in Boston, it seems that the employees of Community Merger don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Community Merger has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Need for greater diversity
– Community Merger has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, Community Merger has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Community Merger supply chain. Even after few cautionary changes mentioned in the HBR case study - Merger Talks: The Story of Three Community Development Corporations in Boston, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Community Merger vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Community Merger, firm in the HBR case study Merger Talks: The Story of Three Community Development Corporations in Boston needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Community Merger has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Merger Talks: The Story of Three Community Development Corporations in Boston HBR case study mentions - Community Merger takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High operating costs
– Compare to the competitors, firm in the HBR case study Merger Talks: The Story of Three Community Development Corporations in Boston has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Community Merger 's lucrative customers.
Opportunities Merger Talks: The Story of Three Community Development Corporations in Boston | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Merger Talks: The Story of Three Community Development Corporations in Boston are -
Developing new processes and practices
– Community Merger can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Community Merger in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Buying journey improvements
– Community Merger can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Merger Talks: The Story of Three Community Development Corporations in Boston suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Manufacturing automation
– Community Merger can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Community Merger to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Community Merger to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Community Merger can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Community Merger has opened avenues for new revenue streams for the organization in the industry. This can help Community Merger to build a more holistic ecosystem as suggested in the Merger Talks: The Story of Three Community Development Corporations in Boston case study. Community Merger can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Community Merger can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Community Merger can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Community Merger can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Merger Talks: The Story of Three Community Development Corporations in Boston, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Community Merger has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Community Merger is facing challenges because of the dominance of functional experts in the organization. Merger Talks: The Story of Three Community Development Corporations in Boston case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Community Merger can use these opportunities to build new business models that can help the communities that Community Merger operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Community Merger can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Merger Talks: The Story of Three Community Development Corporations in Boston External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Merger Talks: The Story of Three Community Development Corporations in Boston are -
Shortening product life cycle
– it is one of the major threat that Community Merger is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Community Merger.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Community Merger with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Community Merger needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Community Merger can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Merger Talks: The Story of Three Community Development Corporations in Boston, Community Merger may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Community Merger can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Merger Talks: The Story of Three Community Development Corporations in Boston .
Technology acceleration in Forth Industrial Revolution
– Community Merger has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Community Merger needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Community Merger in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Community Merger will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing wage structure of Community Merger
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Community Merger.
High dependence on third party suppliers
– Community Merger high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Community Merger business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Merger Talks: The Story of Three Community Development Corporations in Boston Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Merger Talks: The Story of Three Community Development Corporations in Boston needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Merger Talks: The Story of Three Community Development Corporations in Boston is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Merger Talks: The Story of Three Community Development Corporations in Boston is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Merger Talks: The Story of Three Community Development Corporations in Boston is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Community Merger needs to make to build a sustainable competitive advantage.